Declared a third quarter dividend of $0.275/share of Class A common
stock paid on October 3, 2016

Originated $845.5 million of commercial mortgage loans, including
$525.8 million of mortgage loans held for sale and $319.6 million of
mortgage loans held for investment, and made $34.2 million of net
leased and other equity investments during the quarter

Contributed $414.9 million of loans to one securitization
transaction

CORRECTION...by Ladder Capital Corp

November 03, 2016 09:13 PM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--Please replace the release with the following corrected version due to
an updated table in the After-Tax Core ROAE section.

The corrected release reads:

LADDER CAPITAL CORP REPORTS THIRD QUARTER 2016 RESULTS

Financial Highlights

Required GAAP disclosures for the third quarter:

GAAP Income before Taxes of $58.3 million and Diluted EPS of $0.44

After-Tax GAAP Return on Average Equity of 12.7%

GAAP Book Value per Share of $13.59 at September 30, 2016

Core Earnings disclosures for the third quarter:

Core Earnings of $44.5 million and Core EPS of $0.40

After-Tax Core Return on Average Equity of 11.7%

Undepreciated Book Value per Share of $14.58 at September 30, 2016

During the third quarter of 2016, Ladder Capital:

Declared a third quarter dividend of $0.275/share of Class A common
stock paid on October 3, 2016

Originated $845.5 million of commercial mortgage loans, including
$525.8 million of mortgage loans held for sale and $319.6 million of
mortgage loans held for investment, and made $34.2 million of net
leased and other equity investments during the quarter

Contributed $414.9 million of loans to one securitization
transaction

Ladder Capital Corp (NYSE:LADR) (“we,” “Ladder,” or the “Company”) today
announced operating results for the quarter ended September 30, 2016.
GAAP Income/(loss) before taxes for the three months ended September 30,
2016 was $58.3 million compared to $(1.4) million for the three months
ended September 30, 2015. The results for the third quarter of 2016
reflect higher gains on the sales of securities and loans than in the
prior year, as well as the unfavorable impact of declining interest
rates during the third quarter of 2015 on the value of interest rate
hedges. GAAP Income/(loss) before taxes for the nine months ended
September 30, 2016 was $47.6 million compared to $93.6 million for the
nine months ended September 30, 2015. The year to date 2016 results
reflect lower gains on loan securitizations and securities trading than
in the first nine months of 2015. The Diluted EPS for the three and nine
months ended September 30, 2016 was $0.44 and $0.40, respectively,
compared to $0.06 and $0.91 for the three and nine months ended
September 30, 2015, respectively. After-tax GAAP return on average
equity was 12.7% in the third quarter of 2016.

Core Earnings, a non-GAAP financial measure, was $44.5 million for the
third quarter of 2016, compared to $41.2 million earned in the third
quarter of 2015. For the nine months ended September 30, 2016, Core
Earnings was $113.6 million compared to $141.3 million for the
comparable period in 2015. While the results of the third quarter of
2016 surpassed the comparable period in the prior year, the nine month
results reflect lower gains on sales of loans due to unfavorable market
trends prevailing during the first half of this year. We believe Core
Earnings, which adjusts GAAP income before taxes for certain non-cash
expenses (including depreciation related to our real estate equity
portfolio) and unrecognized derivative results, is useful in evaluating
our earnings from operations across reporting periods. Core EPS, a
non-GAAP financial measure, was $0.40 for the third quarter of 2016 and
$1.10 for the nine months ended September 30, 2016, compared to $0.40
and $1.40 for the three and nine months ended September 30, 2015,
respectively.

“We are pleased with our results in the third quarter, with Core
Earnings of $44.5 million and an annualized after-tax core return on
average equity of 11.7%" said Brian Harris, Ladder's Chief Executive
Officer. “With the return of stronger profits from our securitization
business, we are now seeing strong performance from all of our business
segments.”

As of September 30, 2016, we had total assets of $6.2 billion, including
$2.4 billion of commercial real estate loans, $2.7 billion of commercial
real estate-related securities, $825.6 million of real estate, $97.2
million of cash and $214.9 million of other assets. As of September 30,
2016, 80.5% of our total assets were comprised of senior secured assets,
including first mortgage loans, commercial real estate-related
securities secured by first mortgage loans, and cash. During the third
quarter, originations and acquisitions of senior secured assets
comprised 96.3% of the total $1.2 billion investment activity.

During the quarter ended September 30, 2016, we originated $845.5
million of loans comprised of $525.8 million of commercial mortgage
loans held for sale and $319.6 million of commercial mortgage loans held
for investment. We participated in 1 securitization transaction during
the third quarter of 2016 contributing a total of $414.9 million in face
amount of commercial mortgage loans. The sale of loans into this
securitization transaction resulted in net income from the sale of loans
of $19.6 million in the third quarter. After factoring in related
hedging results and other related adjustments, income from sales of
securitized loans, net of hedging during the third quarter was $16.6
million. We also received $222.6 million from the repayment of mortgage
loans during the three months ended September 30, 2016.

Our portfolio of CMBS and U.S. Agency Securities decreased by $49.3
million during the third quarter to $2.7 billion as we purchased $322.8
million and sold $178.8 million of securities during the quarter. We
also received $172.2 million of proceeds from the repayment of
securities.

During the third quarter of 2016, we purchased 4 single tenant net lease
and other properties for a total investment of $34.2 million. We have
financed or plan to finance these properties with non-recourse mortgage
loans that have been contributed to securitizations or internal
non-recourse mortgage loans that are eligible for securitization. During
the three months ended September 30, 2016, our mortgage loan financing
increased by $28.6 million primarily due to the contribution of 6 loans
secured by our real estate investments to securitizations. We also sold
29 condominium units for a total of $10.2 million during the third
quarter, which generated a net gain on sale of real estate of $4.2
million. Our total real estate portfolio as of September 30, 2016 was
$825.6 million.

Net interest income for the third quarter of 2016 was $29.6 million,
compared to $33.5 million for the comparable period in the prior year,
primarily due to lower weighted average yield on our mortgage loan
receivables and higher interest expense as a result of higher
outstanding financing obligations. Total other income increased
significantly year over year to $69.3 million in the third quarter of
2016 from $7.5 million in the third quarter of 2015. Compared to the
third quarter of 2015, net gain from derivative transactions increased
by $51.6 million, primarily due to an adverse change in the value of
interest rate hedges in 2015. A net gain from sale of loans of $19.6
million compared to $15.2 million in the prior year also contributed to
higher total other income.

Portfolio Overview

The following table summarizes the book value of our investment
portfolio as of the following dates:

September 30, 2016

December 31, 2015

($ in thousands)

Loans

Conduit first mortgage loans

$

784,186

12.6

%

$

571,764

9.7

%

Balance sheet first mortgage loans

1,473,852

23.7

%

1,453,120

24.6

%

Other commercial real estate-related loans

169,183

2.7

%

285,525

4.8

%

Total loans

2,427,221

39.0

%

2,310,409

39.1

%

Securities

CMBS investments

2,588,760

41.6

%

2,335,930

39.7

%

U.S. Agency Securities investments

62,199

1.0

%

71,287

1.2

%

Total securities

2,650,959

42.6

%

2,407,217

40.9

%

Real Estate

Real estate and related lease intangibles, net

825,593

13.3

%

834,779

14.2

%

Total real estate

825,593

13.3

%

834,779

14.2

%

Other Investments

Investments in unconsolidated joint ventures

33,860

0.5

%

33,797

0.6

%

FHLB stock

77,915

1.3

%

77,915

1.3

%

Total other investments

111,775

1.8

%

111,712

1.9

%

Total investments

6,015,548

96.7

%

5,664,117

96.1

%

Cash, cash equivalents and cash collateral held by broker

97,190

1.6

%

139,770

2.4

%

Other assets

103,078

1.7

%

91,325

1.5

%

Total assets

$

6,215,816

100.0

%

$

5,895,212

100.0

%

Note: CMBS investments and U.S. Agency Securities are carried at
fair value.

We originate conduit first mortgage loans eligible for securitization
that are secured by cash-flowing commercial real estate properties.
These first mortgage loans are structured with fixed rates and five- to
ten-year terms. As of September 30, 2016, we held 33 first mortgage
loans that were substantially available for contribution into future
securitizations with an aggregate book value of $784.2 million. Based on
the outstanding loan principal balances at September 30, 2016 and the
“as-is” third-party FIRREA appraised values at origination, the weighted
average loan- to-value ratio of this portfolio was 65.6%.

We also originate balance sheet first mortgage loans secured by
commercial real estate properties that are undergoing lease-up,
sell-out, renovation, or repositioning. These mortgage loans are
generally structured with floating rates and terms (including extension
options) ranging from one to five years. As of September 30, 2016, we
held a portfolio of 69 balance sheet first mortgage loans with an
aggregate book value of $1.5 billion, 97.5% of which was floating-rate.
Based on the outstanding loan principal balances at September 30, 2016
and the “as-is” third-party FIRREA appraised values at origination, the
weighted average loan-to-value ratio of this portfolio was 66.6%.

We selectively invest in other commercial real estate loans in the form
of note purchase financings, subordinated debt, mezzanine debt, and
other structured finance products related to commercial real estate. We
held $169.2 million of other commercial real estate-related loans as of
September 30, 2016, all of which were fixed-rate. Based on the
outstanding loan principal balances through the mezzanine or
subordinated debt level at September 30, 2016 and the “as-is”
third-party FIRREA appraised values at origination, the weighted average
loan-to-value ratio of this portfolio was 74.2%.

As of September 30, 2016, our portfolio of CMBS investments had an
estimated fair value of $2.6 billion and was comprised of investments in
199 CUSIPs ($13.0 million average investment per CUSIP), with a weighted
average duration of 3.1 years.

As of September 30, 2016, our portfolio of U.S. Agency Securities had an
estimated fair value of $62.2 million and was comprised of investments
in 31 CUSIPs ($2.0 million average investment per CUSIP), with a
weighted average duration of 8.0 years.

As of September 30, 2016, we owned 6.9 million square feet of real
estate, comprised of 112 single tenant net lease properties, 4
individual office buildings, 3 portfolios of office buildings, 1
warehouse, 1 shopping center, 74 condominium units at Veer Towers in Las
Vegas, and 104 condominium units at Terrazas River Park Village in
Miami. Our total real estate portfolio had an aggregate book value of
$825.6 million. We typically originate internal non- recourse mortgage
loan financing secured by an individual property or a group of
properties in our real estate portfolio and subsequently seek to
securitize these loans. Once the loans have been securitized, they are
included on our balance sheet as mortgage loan financing. As of
September 30, 2016, we had $575.5 million of such mortgage loan
financing, secured by certain of our real estate properties.

On October 18, 2016, Ladder Capital Asset Management LLC (“LCAM”), a
subsidiary of the Company and a registered investment adviser, launched
the Ladder Select Bond Fund (the “Fund”), a mutual fund. In addition, on
October 18, 2016, we made a $10.0 million investment in the Fund.
Members of senior management have also invested $1.6 million in
aggregate in the Fund since inception. LCAM earns a 0.75% fee on assets
under management, which may be reduced for expenses incurred in excess
of the Fund’s expense cap of 0.95%.

Liquidity and Capital Resources

We held unrestricted cash and cash equivalents of $59.7 million at
September 30, 2016. We had total debt outstanding of $4.6 billion as of
September 30, 2016, and we had an additional $1.5 billion of committed
financing available for additional investment through our FHLB
membership, our revolving credit agreements, and our committed
repurchase facilities. As of September 30, 2016, we had $63.2 million of
nonrecourse mortgage loan receivable financing, a result of a
contribution of $61.6 million of non-controlling pari passu interests to
a securitization transaction during the quarter. Because effective
control continued to reside with the retained portions of the loans, the
transfers are considered nonrecourse secured borrowings rather than
asset sales. The full loan assets remain on the Company's consolidated
balance sheets, and the sale proceeds are recognized as nonrecourse
mortgage loan receivable financing.

The following table summarizes our debt obligations as of the following
dates:

September 30, 2016

December 31, 2015

($ in thousands)

Committed loan facilities

$

622,643

$

704,149

Committed securities facility

380,319

161,887

Uncommitted securities facilities

455,365

394,719

Total repurchase agreements

1,458,327

1,260,755

Revolving credit facility

100,000

—

Mortgage loan financing

575,533

544,663

Mortgage loan receivable financing

63,177

—

Borrowings from the FHLB

1,844,700

1,856,700

Senior unsecured notes

559,274

612,605

Total debt obligations

$

4,601,011

$

4,274,723

To maintain our qualification as a REIT under the Internal Revenue Code
of 1986, as amended, we must annually distribute at least 90% of our
taxable income. The REIT distribution requirements limit our ability to
retain earnings and thereby replenish or increase capital for
operations. We believe that our significant capital resources and access
to financing will provide us with financial flexibility at levels
sufficient to meet current and anticipated capital requirements,
including funding new investment opportunities, paying distributions to
our shareholders and servicing our debt obligations.

Conference Call and Webcast

We will host a conference call on Thursday, November 3, 2016 at 5:00
p.m. Eastern Time to discuss third quarter 2016 results. The conference
call can be accessed by dialing (877) 407-4018 domestic or (201)
689-8471 international. Individuals who dial in will be asked to
identify themselves and their affiliations. For those unable to
participate, an audio replay will be available from 8:00 p.m. Eastern
Time on Thursday, November 3, 2015 through midnight Thursday, November
17, 2015. To access the replay, please call (844) 512-2921 domestic or
(412) 317-6671 international, access code 13646520. The conference call
will also be webcast though a link on Ladder Capital Corp’s Investor
Relations website at ir.laddercapital.com. A web-based archive of the
conference call will also be available at the above website.

Reconciliation of Non-GAAP Financial Measures

We present Core Earnings, Core EPS, and After-Tax Core Return on Average
Equity ("After-Tax Core ROAE"), which are non-GAAP financial measures,
as supplemental measures of our performance. We believe Core Earnings,
Core EPS and After-Tax Core ROAE assist investors in comparing our
performance across reporting periods on a consistent basis by excluding
non-cash expenses and unrecognized results from derivatives and Agency
interest-only securities, which we believe makes comparisons across
reporting periods more relevant by eliminating timing differences
related to changes in the values of assets and derivatives. In addition,
we use Core Earnings, Core EPS and After-Tax Core ROAE: (i) to evaluate
our earnings from operations and (ii) because management believes that
it may be a useful performance measure for us. Core Earnings is also
used as a factor in determining the annual incentive compensation of our
senior managers and other employees.

We present Undepreciated book value per share, which is a non-GAAP
financial measure, as a supplemental measure of our financial condition.
We believe Undepreciated book value per share assists investors in
comparing our financial condition across reporting periods on a
consistent basis by excluding accumulated depreciation on real estate,
which implicitly assumes that the value of our real estate diminishes in
value predictably over time, whereas real estate values have
historically risen or fallen with market conditions.

We present income from sales of securitized loans, net of hedging, a
non-GAAP financial measure, as a supplemental measure of the performance
of our loan securitization business. Income from sales of securitized
loans, net is a key component of our results. Since our loans sold into
securitizations to date are comprised of long- term fixed-rate loans,
the result of hedging those exposures prior to securitization represents
a substantial portion of our interest rate hedging. Therefore, we view
these two components of our profitability together when assessing the
performance of this business activity and find it a meaningful measure
of the Company’s performance as a whole.

We consider the Class A common shareholders of the Company and limited
partners of Ladder Capital Finance Holdings LLLP other than Ladder
Capital Corp ("Continuing LCFH Limited Partners") to have fundamentally
equivalent interests in our pre-tax earnings and net income.
Accordingly, for purposes of computing Core Earnings, Core EPS and
After- Tax Core ROAE, we start with pre-tax earnings or net income and
adjust for other noncontrolling interest in consolidated joint ventures
but we do not adjust for amounts attributable to noncontrolling interest
held by Continuing LCFH Limited Partners. Similarly, when calculating
Undepreciated book value per share we include Total shareholders' equity
and the noncontrolling interest held by Continuing LCFH Limited
Partners, but exclude noncontrolling interest in consolidated joint
ventures.

Core Earnings

We define Core Earnings as income before taxes adjusted to exclude (i)
real estate depreciation and amortization, (ii) the impact of derivative
gains and losses related to the hedging of assets on our balance sheet
as of the end of the specified accounting period, (iii) unrealized
gains/(losses) related to our investments in Agency interest-only
securities, (iv) the premium (discount) on mortgage loan financing and
the related amortization of premium (discount) on mortgage loan
financing recorded during the period, (v) non-cash stock-based
compensation and (vi) certain one-time transactional items.

We do not designate derivatives as hedges to qualify for hedge
accounting and therefore any net payments under, or fluctuations in the
fair value of, our derivatives are recognized currently in our income
statement. However, fluctuations in the fair value of the related assets
are not included in our income statement. We consider the gain or loss
on our hedging positions related to assets that we still own as of the
reporting date to be “open hedging positions.” While recognized for GAAP
purposes, we exclude the results on the hedges from Core Earnings until
the related asset is sold and the hedge position is considered “closed,”
whereupon they would then be included in Core Earnings in that period.
These are reflected as “Adjustments for unrecognized derivative results”
for purposes of computing Core Earnings for the period.

Our investments in Agency interest-only securities are recorded at fair
value with changes in fair value recorded in current period earnings. We
believe that excluding these specifically identified gains and losses
associated with the open hedging positions adjusts for timing
differences between when we recognize changes in the fair values of our
assets and derivatives which we use to hedge asset values. Set forth
below is an unaudited reconciliation of Net Income to After-Tax Core
Earnings:

Includes $7,986 and $21,397 of net income attributable to
noncontrolling interest in consolidated joint ventures which are
included in net (income) loss attributable to noncontrolling
interest in operating partnership on the combined consolidated
statements of income for the three and nine months ended September
30, 2016, respectively.

(2)

The following is a reconciliation of GAAP depreciation and
amortization to our share of real estate depreciation, amortization
and gain adjustments amounts presented in the computation of Core
Earnings in the preceding table:

GAAP gains/losses on sales of real estate include the effects of
previously recognized real estate depreciation and amortization. For
purposes of Core Earnings, our share of real estate depreciation and
amortization is eliminated and, accordingly, the resultant gain/losses
must also be adjusted. Following is a reconciliation of the related
consolidated GAAP amounts to the amounts reflected in Core Earnings.

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2016

2015

2016

2015

($ in thousands)

GAAP realized gain on sale of real estate, net

$

4,649

$

6,406

$

15,616

$

21,347

Less: Our share of accumulated depreciation and amortization on
real estate sold

(820

)

(861

)

(2,290

)

(2,204

)

Adjusted gain/loss on sale of real estate for purposes of Core
Earnings

$

3,829

$

5,545

$

13,326

$

19,143

(3)

The following is a reconciliation of GAAP net results from
derivative transactions to our hedging unrecognized result presented
in the computation of Core Earnings in the preceding table:

Three Months Ended September 30,

Nine Months Ended September 30,

2016

2015

2016

2015

($ in thousands)

Net results from derivative transactions

$

9,356

$

(42,242

)

$

(66,148

)

$

(54,594

)

Less: Hedging interest expense

8,661

6,471

23,244

20,330

Less: Hedging realized result

6,903

3,870

12,351

23,761

Hedging unrecognized result

$

24,920

$

(31,901

)

$

(30,553

)

$

(10,503

)

(4)

We recorded an additional $3.2 million income tax expense for a
proposed tax settlement for pre-acquisition liabilities on certain
corporate entities acquired in the IPO Reorganization
Transactions. We also recorded other income of $3.2 million
relating to the expected recovery of these amounts pursuant to
indemnification. While these items are presented on a gross basis,
there was no impact to either net income or core earnings.
Accordingly, since pre-tax income excludes the tax effect but
includes the recovery of $3.2 million pursuant to the
indemnification, the recovery amount must also be excluded from
Core Earnings.

(5)

One-time transactional adjustment for costs related to restructuring
the Company for REIT related operations. All costs were expensed and
accrued for in the period incurred.

Core EPS is defined as After-Tax Core Earnings divided by the Adjusted
weighted average shares outstanding (diluted) during the period. The
Adjusted weighted average shares outstanding (diluted) is defined as the
GAAP weighted average shares outstanding (diluted), adjusted for shares
issuable upon conversion of all Class B shares, if excluded from the
GAAP measure because they would have an anti-dilutive effect. The
inclusion of shares issuable upon conversion of Class B shares is
consistent with the inclusion of income attributable to noncontrolling
interest in operating partnership in Core Earnings and After-Tax Core
Earnings.

Set forth below is an unaudited reconciliation of Weighted average
shares outstanding (diluted) to Adjusted weighted average shares
outstanding (diluted):

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2016

2015

2016

2015

(in thousands)

Weighted average shares outstanding (diluted)

63,348

53,349

61,875

51,389

Weighted average shares issuable to converted Class B shareholders

45,468

44,717

45,970

46,535

Adjusted weighted average shares outstanding (diluted)

108,816

98,066

107,845

97,924

Set forth below is an unaudited computation of Core EPS:

Three Months Ended September 30,

Nine Months Ended September 30,

2016

2015

2016

2015

($ in thousands, except per share data)

After-tax core earnings

$

43,517

$

39,621

$

118,407

$

136,615

Adjusted weighted average shares outstanding (diluted)

108,816

98,066

107,845

97,924

Core EPS

$

0.40

$

0.40

$

1.10

$

1.40

Income from sale of securitized loans, net of hedging

Set forth below is an unaudited reconciliation of income from sale of
securitized loans, net to income from sale of loans, net as reported in
our combined consolidated financial statements included herein and an
unaudited reconciliation of hedge gain/(loss) relating to loans
securitized to net results from derivative transactions as reported in
our combined consolidated financial statements:

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2016

2015

2016

2015

($ in thousands, except number of loans and securitizations)

Number of loans

34

63

60

153

Face amount of loans sold into securitizations

$

414,902

$

860,062

$

664,058

$

1,981,383

Number of securitizations

1

3

3

7

Income from sales of securitized loans, net (1)

$

19,640

$

15,165

$

27,186

$

59,717

Hedge gain/(loss) related to loans securitized (2)

(3,007

)

(3,405

)

(6,815

)

(8,080

)

Income from sales of securitized loans, net of hedging

$

16,633

$

11,760

$

20,371

$

51,637

(1)

The following is a reconciliation of the non-GAAP financial measure
of income from sales of securitized loans, net to income from sale
of loans, net, which is the closest GAAP measure, as reported in our
combined consolidated financial statements:

Three Months Ended September 30,

Nine Months Ended September 30,

2016

2015

2016

2015

($ in thousands)

Income from sales of loans (non-securitized), net

$

—

$

—

$

3,079

$

—

Income from sales of securitized loans, net

19,640

15,165

27,186

59,717

Income from sales of loans, net

$

19,640

$

15,165

$

30,265

$

59,717

(2)

The following is a reconciliation of the non-GAAP financial measure
of hedge gain/(loss) related to loans securitized to net results
from derivative transactions, which is the closest GAAP measure, as
reported in our combined consolidated financial statements:

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2016

2015

2016

2015

($ in thousands)

Hedge gain/(loss) related to lending and securities positions

$

12,363

$

(38,837

)

$

(58,278

)

$

(46,514

)

Hedge gain/(loss) related to loans (non-securitized)

—

—

(1,055

)

$

—

Hedge gain/(loss) related to loans securitized

(3,007

)

(3,405

)

(6,815

)

(8,080

)

Net results from derivative transactions

$

9,356

$

(42,242

)

$

(66,148

)

$

(54,594

)

After-Tax Core ROAE

After-Tax Core ROAE is presented on an annualized basis and is defined
as After-Tax Core Earnings divided by the average Total shareholders'
equity and Noncontrolling interest in operating partnership during the
period. The inclusion of Noncontrolling interest in operating
partnership is consistent with the inclusion of income attributable to
noncontrolling interest in operating partnership in After-Tax Core
Earnings. Set forth below is an unaudited computation of After-Tax Core
ROAE:

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2016

2015

2016

2015

($ in thousands)

After-tax core earnings

$

43,517

$

39,621

$

118,407

$

136,615

Average shareholders' equity and NCI in operating partnership

1,488,071

1,497,604

1,482,317

1,501,402

After-tax core ROAE

11.7

%

10.6

%

10.7

%

12.1

%

Undepreciated book value per share

We define Undepreciated book value per share as the sum of Total
shareholders' equity, Noncontrolling interest in operating partnership,
and Our share of accumulated real estate depreciation and amortization,
divided by the total Class A and Class B shares outstanding. Set forth
below is an unaudited reconciliation of Total shareholders' equity to
Undepreciated book value, and an unaudited computation of Undepreciated
book value per share:

The following is a reconciliation of GAAP Accumulated real estate
depreciation and amortization to Our share of accumulated real
estate depreciation and amortization presented in the computation of
Undepreciated book value per share in the preceding table.

Our non-GAAP financial measures, including Core Earnings, Core EPS,
After-Tax Core ROAE and Undepreciated book value per share have
limitations as analytical tools. Some of these limitations are:

Core Earnings, Core EPS and After-Tax Core ROAE do not reflect the
impact of certain cash charges resulting from matters we consider not
to be indicative of our ongoing operations and are not necessarily
indicative of cash necessary to fund cash needs;

Core EPS and After-Tax Core ROAE are based on a non-GAAP estimate of
Ladder’s effective tax rate, including the impact of UBT and the
impact of Ladder's election to be taxed as a REIT effective January 1,
2015, assuming the conversion of all shares of Class B common stock
into shares of Class A common stock. Ladder’s actual tax rate may
differ materially from this estimate;

Undepreciated book value per share excludes accumulated real estate
depreciation and amortization and may not reflect an accurate measure
of the value of our real estate; and

other companies in our industry may calculate non-GAAP financial
measures differently than we do, limiting their usefulness as
comparative measures.

Because of these limitations, our non-GAAP financial measures should not
be considered in isolation or as a substitute for net income (loss)
attributable to shareholders, earnings per share or book value per
share, or any other performance measures calculated in accordance with
GAAP. Our non-GAAP financial measures should not be considered an
alternative to cash flows from operations as a measure of our liquidity.
Undepreciated book value per share should not be considered a measure of
the value of our assets upon an orderly liquidation of the Company.

In the future, we may incur gains and losses that are the same as or
similar to some of the adjustments in this presentation. Our
presentation of non-GAAP financial measures should not be construed as
an inference that our future results will be unaffected by unusual or
non-recurring items.

For additional information about our non-GAAP financial measures, please
refer to the disclosures available on our website or our Quarterly
Report on Form 10•Q.

About Ladder

Ladder is an internally-managed real estate investment trust that is a
leader in commercial real estate finance. Ladder originates and invests
in a diverse portfolio of commercial real estate and real estate-related
assets, focusing on senior secured assets. Ladder’s investment
activities include: (i) direct origination of commercial real estate
first mortgage loans; (ii) investments in investment grade securities
secured by first mortgage loans on commercial real estate; and (iii)
investments in net leased and other commercial real estate equity.
Founded in 2008, Ladder is run by a highly experienced management team
with extensive expertise in all aspects of the commercial real estate
industry, including origination, credit, underwriting, structuring,
capital markets and asset management. Led by Brian Harris, the Company’s
Chief Executive Officer, Ladder is headquartered in New York City and
has branches in Los Angeles and Boca Raton.

Forward-Looking Statements

Certain statements in this release may constitute “forward-looking”
statements. These statements are based on management’s current opinions,
expectations, beliefs, plans, objectives, assumptions or projections
regarding future events or future results. These forward-looking
statements are only predictions, not historical fact, and involve
certain risks and uncertainties, as well as assumptions. Actual results,
levels of activity, performance, achievements and events could differ
materially from those stated, anticipated or implied by such
forward-looking statements. While Ladder believes that its assumptions
are reasonable, it is very difficult to predict the impact of known
factors, and, of course, it is impossible to anticipate all factors that
could affect actual results. There are a number of risks and
uncertainties that could cause actual results to differ materially from
forward-looking statements made herein including, most prominently, the
risks discussed under the heading “Risk Factors” in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2015, as well as its
consolidated financial statements, related notes, and other financial
information appearing therein, and its other filings with the U.S.
Securities and Exchange Commission. Such forward- looking statements are
made only as of the date of this release. Ladder expressly disclaims any
obligation or undertaking to release any updates or revisions to any
forward-looking statements contained herein to reflect any change in its
expectations with regard thereto or changes in events, conditions, or
circumstances on which any such statement is based.